How To Increase Eligibility For Home Loan | Home Loan Eligibility Tips
How to Increase Eligibility for Home Loan
Having a home is the biggest ambitious of everyone. Usually people go for home loan without knowing its whole terms and condition and their application form has been rejected due to insufficient documents or eligibility criteria. Do you know you How to Increase Eligibility for Home Loan. If you wish to increase your Eligibility for home loan then you must read this article because we are presented the Home Loan Eligibility Tips in below section.
There are some special factors which enhance your repayment capacity and show positive impact on your eligibility. Bank offers the home loan on the basis of the repayment capacity of applier because taking credit is more convenient than paying. If you want to acquire home loan then your repayment capacity must be impressive. The amount of home loan is calculated by the definite formula which we are describing in below area.
Home Loan Eligibility Calculator
|Age||Minimum: 21 yrs.
Maximum: 65 yrs. (depending on type of employment)
|Minimum Net Annual Income||Rs. 5 – 7 lakhs depending on type of employment, EMIs offered up to 50% of net income, on average|
|Type of Employment||Self-employed or Salaried|
|Status of Employment||Regular; at least 1 yrs. in current job/business/profession.; at least 2 yrs. of prior employment|
|Type of residence||Owned/ Rented|
|Status of Residence||At least 1 yr. at current place of stay|
|Credit Rating||Good rating as per recognised credit bureau|
|Type of property being purchased||Affects loan amount eligibility|
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How To Increase Eligibility For Home Loan
As EMIs reduces eligibility increases .The most important factor for deciding the eligibility is the repayment capacity of loan applier. You can increase your loan amount only in one condition if you increase the tenure so that EMI of loan reduces. Longer duration increase your interest so try your best to choose small Tenure.
How To Calculate Eligibility For Home Loan
Assume Shiva is doctor and he earns 80,000 per month. Its income is enough for home loan because he does not spend all amounts on his expenses. Suppose he saves 40,000 per month it means he is able to pay any kind of EMI.
Now the bank will calculate how much money required paying off 1 lakh loan. Suppose bank allowed the tenure of 20 years at the interest of 10.5% to the Shiva. After the calculation EMI required to pay Rs 1 lakh loan comes to Rs 998.
If Shiva wants a loan of 20 lakh for the 20 year tenure, he needs to pay 39920 EMI per month. For the 1 lkh the EMI is required of 998 included with principle.
Rs 1 lakh x 40,000/998= Rs 40 lakh.
So the eligibility of Shiva is 40 lakh.
Many times your income is not sufficient to purchase a home. Middle class family depends on the single earning person. In such type of condition user can combine his salary with another family member which will create the positive effect on his repayment capacity. This is a simple way to increase your eligibility without any arduous efforts.
Clear Other Outstanding Loans
If you have already taken another loan then it would reduce your loan eligibility. Because you were paying EMIs for that loan hence it reduces your monthly payback capacity. So once must Clear Other Outstanding loans for increasing his or her eligibility for a home loan. This is only possible when your bank history is free from any kind of credit.
This repaying these loans from other sources will greatly move up the total amount of home loan. However, this is only possible if the outstanding amount is within the reach of the individual. Up to 15 – 18 remaining EMIs is considered repayable under normal circumstances.
Accordingly reimbursing these credits from different sources will extraordinarily climb the aggregate sum for home loan. However this is just conceivable if the extraordinary sum is inside the compass of the person. Up to 15 – 18 remaining EMIs is viewed as repayable under typical conditions.
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Include All Perks (Bonus)
If you are applying for home loan must includes the entire bonus which you are earned with your salary. It will impose positive effect on your repayment capacity and enhance your eligibility criteria. The perks consists your performance associated bonus or extra pay for overtime etc.
Home Loan Eligibility Tips
Credit History Of Applicant
If you have satisfactory banking records that impact a positive effect on your loan eligibility while on the other hand, if your credit history is poor then it reduces your loan chances. For example Shivam had taken the loan of 40 lakh in normal condition and paid all the EMIs on time if he again tries to loan, the bank will sanction his loan abruptly. One other person his name is Amit had taken same amount in ordinary circumstances, but he had not paid it all EMI on time, so if again tries for loan bank might be approve his loan.
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Profession Of Applier
The profession of loan applicant really matters because if you have government job bank will provides your loan within the short period. If you are working in any reputed company then it also impacts positive effect. If your job is risky that means you can anytime lose your job so the bank will hesitate you to sanction the loan. If you are Software Engineers, Banking employee, doctor, etc. that increase your loan chances.
Bank will decide the loan amount on basis of repayment capacity. If you want to take big amount as loan you need to give the proof of your income certificate. Your credit history, income certificate, current assets and liabilities defines your repayment capacity. If you have sufficient income then you are applicable for taking a home loan. If your salary is not enough for 15 year tenure loan, you are accountable to increase your tenure for 20 years.